Netflix Stock News and Predictions: Three Reasons to Sell After Earnings (NFLX)

Netflix announced its earnings after the market closed on Tuesday.
The shares of NFLX first rose in response to the EPS beat, but then dropped back.
Netflix’s earnings per share (EPS) were higher than expected, while revenue was flat.

Netflix (NFLX) has had a great start to earnings, as investors absorbed the enormous popularity of Squid Game and believed that this would translate into very high subscription numbers. Netflix released results just after the bell, and they look to be pretty good statistics at first glance. Netflix’s earnings per share (EPS) came in at $3.19, compared to $2.56 anticipated. At $7.48 billion, revenue came in close to expectations. Netflix also provided Q4 revenue projection of $7.71 billion, which was higher than the average analyst expectation of $7.68 billion. The next quarter’s earnings per share (EPS) were on the low side, at $0.80, compared to the $1.10 consensus forecast.

Netflix attracted 4.4 million new members in the third quarter, above expectations of 3.86 million new subscribers. Netflix said it will report on hours viewed instead of the number of accounts that watch a title in the future. Netflix also stated that it anticipates 8.5 million additional users by the end of the year, which is more…